This Metric Suggests Bitcoin Has Bottomed Out
Bitcoin likely carved out a major price bottom in December, according to a non-price metric, which has proved as a reliable price indicator in the past.
Bitcoin’s price volatility spiked in January and could further increase over the near term because “whales” have begun accumulating coins.
The number of bitcoin on-chain deposits has dropped sharply over the last six months, indicating a strong optimistic or “HODLing,” sentiment in the market.
Several factors could explain ether’s spectacular gains and determine whether they will continue.
Though the industry is growing rapidly, a very small portion of addresses hold the majority of assets being locked and borrowed in the DeFi space.
A key on-chain metric has witnessed solid growth over the past 12 months, possibly indicating steady accumulation of bitcoins by retail traders.